The US dollar continues its rebound, with the EURUSD pair breaking below the lows of the last two weeks. The US yield curve has steepened significantly, with the spread between 2-year and 30-year bonds reaching 126 basis points, the highest level in more than three years. In Europe, stock indices initially rose but quickly erased their gains, with banks posting the biggest declines after reports that Italy may tap into their profits to shore up public finances. The technology sector in Europe continues to lag behind its US counterpart, with markets awaiting guidance on demand for artificial intelligence following the release of Nvidia's results. The strength of the dollar is currently driven primarily by the weakness of the euro, declines in European bank stocks fueled by political uncertainty in France, and the latest news from the Italian banking sector.
Once again, banks are weighing most heavily on European markets. Source: xStation
The EURUSD pair is already down 0.5% today, falling below the psychological barrier of 1.1600. If the market supply side manages to maintain its downward momentum, the 100-day EMA, which halted the declines at the end of July, may prove to be a key support point. On the other hand, the 50-day EMA remains an important resistance level.
xStation
Daily Summary: Technology Drives Wall Street to Record Highs Despite Tensions in the Persian Gulf
🔴 Three markets to watch next week: EURUSD, CH50cash, OIL (08.05.2026)
US Open: Earnings season and strong NFP report drive Wall Street higher!
BREAKING: American Consumers Ease Inflation Fears, But Sentiment Stays Weak
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
